Pension Reserve Fund (Fondo de Reserva de Pensiones)

Fondo de Reserva de Pensiones · Chile · Latin America and Caribbean · Founded 2006 · Pension reserve fund · IFSWF full member

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Focus

Fondo de Reserva de Pensiones: what it invests in

Public equitiesFixed income

Geography Global

Scale

Fondo de Reserva de Pensiones: how big it is, and on what basis

USD 10.71B

Fund market valueAs of 2026-08-31

In US dollars: about USD 10.71B. Fund reports in USD

Return since 2007 4.07% a year (USD)

Transparency

Fondo de Reserva de Pensiones: what it publishes

9.0 of 10 Band 5 of 5

Published 8 · Partly 2 · Not published 0

Our 10 item score. It measures what is public, not how well a fund is run.

Market valueS4: USD 10.71B (31 August 2026); As of 2026-08-31
Return since 2007S5: 4.07% a year (USD)
3-year returnS5: 10.44% a year
Contributions since 2006S4: USD 12.26B; As of 2026-08-31
Withdrawals to dateS4: USD 7.45B; As of 2026-08-31
Equities, actualS7: 51.6%; As of 2026-08-31
Annual contribution capS1: 0.5% of GDP
Transparency scoreS5: 9.0 of 10

At a glance. Chile's Pension Reserve Fund is a fiscal reserve that helps pay state pension obligations, including the Universal Guaranteed Pension. It invests only outside Chile in a global bond and equity portfolio run by the Central Bank and external managers. It held USD 10.71B at end August 2026 and has returned 4.07 percent a year in USD since April 2007. S1 S4 S5

Key points

Received USD 12.26B of contributions since 2006 and paid out USD 7.45B in withdrawals. S4
Funded by the effective fiscal surplus each year, up to 0.5 percent of GDP. S1
Strategic mix is 51.5 percent equities and 48.5 percent bonds, benchmarked to MSCI ACWI ex Chile and Bloomberg indices. S3
Returned 10.80 percent over the 12 months to August 2026 and 10.44 percent a year over three years. S5
United States assets were 52.76 percent of the portfolio at end 2025. S6
Can lend up to USD 900M to a new pension protection fund; USD 200M moved on 1 August 2025. S6

Interesting facts

Withdrawals peaked at USD 2.96B in 2021, after USD 1.58B in 2020. S4
Its largest single contribution was USD 1.64B in 2023. S4
A withdrawal rule set by the Minister aims to keep annual drawdowns stable and preserve real value over time. S1

Mandate and goals

Support the financing of fiscal pension obligations, complementing future pension needs as the population ages. S1

Keep the real value of the fund. S3
Earn long-horizon returns with prudent risk. S3
Fund the Universal Guaranteed Pension and disability solidarity benefits. S1
Return target: No numeric target; preserve real value with reasonable risk for a long horizon S3

How it invests

Industries	. Sector agnostic S3
Asset classes	Public equities, Fixed income S3
Stages	Public markets S3
Geography	Global. Invests only outside Chile, in foreign currency; 59.61 percent in US dollars at end 2025 S6 S5
Direct / through funds / co-invest	Yes / No / No S3
Ticket size	Public markets only; no private deal tickets S3
External managers	Central Bank of Chile hires external managers through tenders for equity, corporate, high yield and MBS mandates S3
Co-investment programme	No co-investment programme S3

Asset mix: Equities 51.6%, Developed sovereign and related bonds 21.7%, Corporate bonds 8.5%, High yield bonds 7.8%, Inflation-linked bonds 7.5%, US agency MBS 2.9% (as of 2026-08-31) S7

Largest country weights: United States 52.76%, United Kingdom 5.75%, Japan 5.56%, China 4.72%, France 4.12%, Canada 3.17% S6

Published criteria

Tracking error limits: 60 basis points for equities, 50 for corporates, 150 for high yield, 400 for emerging sovereign debt. S3
Benchmarks in USD unhedged, MSCI ACWI ex Chile for equities. S3
Fixed income credit quality 85.0 percent investment grade at end 2025. S6

Past investments

Year	Investment	Type	Sector	Amount
2025	Pension protection fund (FAPP) transfer. First of up to USD 900M of repayable transfers to the autonomous pension protection fund. S6	State asset transfer	Financial services	USD 200M

Case studies

Funding pensions through the pandemic S4

What: Withdrawals rose sharply to cover pension obligations.
When: 2020 to 2021
Size: USD 4.54B over two years
Why: Pension costs rose while contributions paused in 2020 and 2021.
Outcome: Contributions resumed in 2022, with USD 1.64B in 2023.

Lending to the pension protection fund S6

What: Law allowed up to USD 900M of transfers to the FAPP, repayable to the reserve fund.
When: August 2025
Size: USD 200M first transfer
Why: Seed a new autonomous fund for pension protection.
Outcome: USD 222.05M held in the FAPP at end 2025.

Investment process

The Minister of Finance sets policy, guidelines and the withdrawal rule with advice from the Financial Committee. The Central Bank implements as fiscal agent. S3

Committee	Role
Financial Committee	Advises on sovereign fund policy; meets at least each semester and reports to Congress yearly S8

Ministry sets guidelines with committee advice. S3
Central Bank runs bond portfolios and tenders external mandates. S3
Monthly and quarterly reporting. S1

How to approach: External mandates are awarded by the Central Bank of Chile through tenders. S3

Size and returns

Headline size: USD 10.71B (Fund market value, as of 2026-08-31) S4
In US dollars: about USD 10.71B. Fund reports in USD
Long-term portfolio excluding FAPP, August 2026: USD 10.49B (Portfolio value, as of 2026-08-31) S7
Return, 12 months to August 2026: 10.8 percent (time weighted; 6.84 percent year to date) S5
Return, 3 years to August 2026: 10.44 percent a year S5
Return, Since 1 April 2007: 4.07 percent a year S5
Size over time (USD billion): 2024 9.378, 2025 10.313, 2026-08 10.713 S4 S6

Leadership

Name	Title	Since
Jorge Quiroz Castro	Minister of Finance S9 S10	2026-03-11
Maria Eugenia Wagner Brizzi	Chair, Financial Committee S8	2026-01
Jennifer Soto Urra	Vice Chair, Financial Committee S8	2022-08
Marco Morales Sepulveda	Member, Financial Committee S8	2024-09
Gabriela Gurovich Camhi	Member, Financial Committee S8	2025-03
Mauricio Larrain Errazuriz	Member, Financial Committee S8	2025-08
Pablo Garcia Silva	Member, Financial Committee S8	2024-09

Governance and transparency

Legal basis: Fiscal Responsibility Law, amended by Law 21.683 of August 2024 S1
Oversight: Financial Committee reports yearly to the Ministry and to the finance and budget committees of Congress S8
Santiago Principles: Full IFSWF member S2
Treasury consolidated assets report issued under the annual Budget Law. S6
Committee minutes and communiques published. S8

Transparency score: 9.0 of 10 (band 5 of 5). Our own 10-item rubric; see the methodology page.

Published: total assets, annual return, long-term returns, asset allocation, geographic or sector split, governance and mandate documents, named leadership, regular reporting schedule. S1 S3 S4 S5 S6 S7 S8
Partly published: holdings or deal list, audited financial statements. S1 S7

History

Date	Event
2006-12-28	Fund constituted with USD 604.5M. S1
2007-04-01	Return series starts. S5
2017	First withdrawals. S4
2021	Record withdrawal of USD 2.96B. S4
2023	Record contribution of USD 1.64B. S4
2024-08	Law 21.683 sets the surplus contribution rule. S1
2025-08-01	First USD 200M transfer to the FAPP. S6
2026-03-11	Jorge Quiroz becomes Minister of Finance. S9

For family offices

The fund holds only listed securities abroad and has no private markets or co-investment programme. Its relevance to private investors is as a benchmark for a conservative global portfolio. S3

Asset managers can compete in Central Bank tenders for mandates. S3

Reports

Treasury consolidated assets report Q4 2025: https://www.dipres.gob.cl/598/articles-404415_doc_pdf.pdf S6
Sovereign funds annual reports: https://www.hacienda.cl/areas-de-trabajo/finanzas-internacionales/fondos-soberanos/informe-anual S11
DIPRES FRP report series: http://www.dipres.gob.cl/598/w3-propertyvalue-15498.html S12

Common questions

Who runs the Chilean Pension Reserve Fund?

The Ministry of Finance sets policy with advice from the Financial Committee; the Central Bank of Chile implements. S3

How large is it?

USD 10.71B at end August 2026. S4

What is it used for?

Funding fiscal pension obligations, including the Universal Guaranteed Pension. S1

Does it invest in Chile?

No. It invests outside Chile in foreign currency. S5

What has it returned?

4.07 percent a year in USD since April 2007. S5

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All sovereign wealth funds in Latin America and Caribbean · All pension reserve funds · All funds in Chile

Sources

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